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Goldman and 'Gandalf' Are Bullish on U.S. Stocks Under Trump

Tax reform to help drive better financial performance.
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Navigating the Markets After Trump's Election Victory

Who thinks President-Elect Trump will be good for U.S. stocks? Goldman Sachs Group Inc. and the JPMorgan Chase & Co. strategist known as 'Gandalf,' to name one high-profile pair.

A Goldman team led by Equity Strategist Benjamin Snider highlighted the potential for corporate tax reform as a major tailwind for the financial performance of Corporate America. “Each percentage point change in the effective U.S. corporate tax rate is worth about $1.50 of 2017 S&P 500 earnings per share [EPS],” the team writes. “A change in the effective tax rate to 20 percent from the current 26 percent would boost our EPS forecast by 8 percent to $125." This would represent year-over-year growth of 20 percent, or double their current expectation.